This is my third time posting the same question. Can someone please provide the
ID: 424691 • Letter: T
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This is my third time posting the same question. Can someone please provide the right solution.This is also a discussion post for a global business class. Thank you. FYI there are two part question
This is the main discussion "Nearshoring and Silicon Border" Based on your reading and current events on the topic Nearshoring and Silicon Border, research and debate with your fellow peers your opinions of the subject Nearshoring and Silicon Border, (1). Discuss the developments of the Silicon Border and the merits of nearshoring as compared to offshore and outsourcing. (2). What do you think about the debate in the text that addresses, “Offshoring Verses Not Offshoring” (pg. 110)? (pg. 110 is from the global business 4th edition textbook by Peng, I have attached pictures too
on whether international business (1B) is different from domestie argument that IB is diflerent is precisely the argument for having stand a eourses in business schools. II the two are essentially the same, then it is pon argue that IB fundamentally is about "business," which is well covered by u finance, and other courses, (Most texthooks in these areas have at least one chape on "international topics.") This question is olwiously very important for companian and business schools. However, there is no right or wrong answer 2 4-5b Offshoring versus Not Offshoring As noted earlier, offshoring-or, more specifically, international (offshore) sourcing-has emerged as a leading corporate movement in the 21st century outsourcing low-end manufacturing to countries such as China and Mexico is no% widely practiced. But increased outsourcing of high-end services, particularhy T and other business process outsourcing (BPO) services, to countries such as Ind is controversial. Because digitization and commoditization of service work are enabled only by the recent rise of the Internet and the reduction of internation al communication costs, it is debatable whether such offshoring proves to be a l term bencfit or hindrance to Western firms and economies. roponents argue that offshoring creates enormous value for firms and econ mies, Western firms are able to tap into low-cost yet high-quality labor, translating into significant cost savings. Firms can also focus on their core capabilities, whi may add more value than noncore (and often uncompetitive) activities. In turn, o ing service providers, such as Infosys and Wipro, develop their core compete ts that for every dollar spent by US firn offshoring in India, the US firms save 58 cents (sec Table 4.3). Overall, USSI. of new wealth is created, of which the US economy captures US$1.13, throug cost savings and increased exports to India, which buys Made-in-USA equipment cies in IT/BPO. A McKinsey study repor Business process outsourcing (BPO Outsourcing business processes softwarc, and services. India captures the othe to third-party providers 33 cents through profits, wages and taxes. While acknowledging that some US employees may regrettably lose Table 4.3 Benefit of US$1 US Spending on Offshoring to India Benefit to the United States USS Benefit to India USS Savings accruing to US investors/ 0.58 Labor customers 0.10 Exports of US goods/services to 0.09 Profits rotained in India oroviders in India 0.10 Profit transfer by US-owned 0.04 Suppliers Central government taxes State government taxes 0.09 operations in india back to the US Net direct benefit retained in 0.67 0.03 the United States Value from US labor reemployed Net benefit to the United States urce: Based on text in D Farreil, 2005, Otfshoring: Val ue creation through econonic charge, Joumal of Management Shudies, 42: 675-683, arte 0.46 0.01 1.13 Net benefit to India 0.33 director of the McKinsey Global Institute , and she refers to a McKinsey study.Explanation / Answer
Nearshoring: Moving research, production, and, business processes to countries that are cheap, and, very close rather than far away, and, very cheap. For instance, Estonia, Finland, and, other European nations. Growing number of organizations in the San Diego, United States region leverage its unique location along the US-Mexico border. Offshoring from the developed nations is to the poor nations in the Asian, and, the Latin American region. The labour is cheap. It is available for low-skilled, skilled, and, skilled work. The outsourcing, and, cost saving can thus be along this continuum. Increasing offshoring from the developed world in manufacturing, and, design can spell disaster for the western firms as Asian firms get into low-cost manufacturing using the technology that then becomes available to them. The firms providing services develop their own core competencies while the offshoring firms. While organizations save more than 50 percent of costs. The nations that offshore gain through exports to these regions. This could be technologies or products. For offshoring to be feasible, these nations to work on technology. If the developed nations do not require products from these nations that work on better technology that is available in these nations.
Nearshoring can work for smaller quantities in manufacturing, for instance, approximately 100. For thousands, economies of scale make production cheaper in Asia - China, South Korea, etc. 3D robotics business along the US-Mexico border is an advantage, and, an opportunity. These are VC funded firms, and, produce for those with specialized needs.
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